Tech View: Nifty 50 bulls not ready to give up; momentum positive

nifty 50 It closed below the 15,800 mark on Wednesday, even though it formed a minor bullish candle on the daily chart. Analysts said the index has corrected in the last few sessions after the gap-down started, which is positive. Additionally, he noted that selling pressure is being absorbed near a major moving average. Analysts said the momentum remains positive.

“In terms of levels, 15,700 is acting as key support. As long as Nifty 50 remains above 15,700 on a close basis, positive action is expected in the coming sessions. Hourly chart shows that The index moved in an upward sloping channel from last week. This indicates that the short-term trajectory is positive, and the index may test 16,000 in the short-term,” said Gaurav Ratnaparkhi of Sharekhan.

The index for the day closed down 51.10 points or 0.32 per cent at 15,799.10.

“After a false upside breakout of 15,800-15,900 levels on Monday, there has been a gradual decline in Nifty 50 over the past two sessions, which could be a positive sign for the bulls to make a comeback from the lows. Generally, Such ranges form near important resistances. A sharp bounce eventually results in,” said Nagraj Shetty, Technical Research Analyst, Securities.

Shetty said that the current range-bound movement may continue for 1-2 sessions, and immediate support can be seen around 15,600-15,650 levels. “On the other hand, a decisive move above the level of 15,850-15,900 is likely to lead to a sustainable upside for the market,” he added.

From a technical perspective, Milan Vaishnav of Gemstone Equity Research said that Nifty 50 is working hard to enter the resistance area of ​​15,670-15,700 and keep its head above this zone.

Vaishnav said this is the support zone that Nifty 50 breached on its way and now this zone is facing stiff resistance.

On the derivatives side, “As we enter the closing day of the current month F&O series, the coming session is bound to dominate with rollovers. Highest Put writing activity has been witnessed at 15,700 levels; Maximum Call OI Accumulation is 16,000. Since Nifty 50 has a gap between 15,900-16,200, Nifty 50 has shown possibilities of testing higher and at least 15,900 and higher.”

Nifty Bank

Off Securities said buying witnessed a decline and Nifty Bank outperformed the broader market and closed with a gain of around 490 points.

This formed a bullish candle on the daily and weekly frame, he said, keeping the index above 33,500 to move towards the 34,000 and 34,250 areas,” said Taparia. Support for the index lies at 33,333 and 33,000, said the analyst. The area is placed.

(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. They do not represent the views of The Economic Times)

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